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Christopher Lewis
Crude Oil daily chart, December 31, 2018

WTI Crude Oil

Based upon the gap higher in the choppy action on Friday, I think that the WTI market is trying to form a bit of a bottom, especially considering that the weekly candle stick is a hammer. At this point, I think that if the market rallies from here, we would probably find the $50 level above as resistance. There is a lot of noise just above there extending to the $55 level, so I think that rallies will be hard-fought, but it is possible that we will see the new year bring in bullish pressure as oil has been oversold.

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Crude Oil Inventories Video 31.12.18

Brent

Brent markets went back and forth during the trading session on Friday as well, but over here we have a little bit more clear of a signal as there is a specific downtrend line just above. I think that short-term pullbacks are buying opportunities though, at least as long as we can stay above the $50 handle. If we do break down below the $50 level, then it opens the door to the $45 level. A break above that downtrend line could change the entire trend of this market, and I do think that OPEC will try to do something early next year to lift this market. Ultimately, I am still a bit skittish about buying this market but I do see that we are trying to turn the corner.

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